METALS-London copper falls, traders cut risk as China growth slows

Reuters Staff

3 Min Read

HONG KONG, May 16 (Reuters) - London copper fell on Tuesday as worries about China's slowing economic growth and tighter capital markets in the world's top metals consumer triggered a wave of risk-off selling in metals.

FUNDAMENTALS

* London Metal Exchange copper fell by 0.6 percent to $5,580 a tonne by 0230 GMT, paring gains from the previous session.

* LME zinc and lead also fell more than 1 percent, and were trading near their lowest for the year, having recently broken below the 200-day moving averages in both cases, sending a sell signal to chart-following funds.

* China's growth took a step back in April after a surprisingly strong start to the year, as factory output to investment to retail sales all tapered off as authorities clamped down on debt risks in an effort to stave off a potentially damaging hit to the economy.

* China's property resale market cooled a notch in April due to intensified government curbs, but chances are slim that prices would fall across the board as housing supply remains short, a top state think-tank said on Monday.

* A private gauge of U.S. home builder sentiment unexpectedly rose in May to its second strongest level since the housing bust nearly a decade ago, as the existing supply of homes remained tight.

* Activist investor Elliott Management upped the pressure for strategic changes at BHP, on Tuesday, calling for an independent review of the mining giant's petroleum business.

* Orica Ltd, the world's No. 1 explosives maker, beat forecasts on Tuesday with a 2.7 percent rise in its half-year underlying profit, helped by cost cuts and higher sales, and said demand from its mining customers was improving.

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MARKETS NEWS

* Asian stocks are set to rise in opening trade on Tuesday following overnight gains on Wall Street, while oil is set to extend a week-long rally after major producers Saudi Arabia and Russia said supply cuts needed to continue into 2018.